CFM21040 | Accounting for corporate finance: International Accounting Standards: relationship between IAS 32/IAS 39 and FRS 25/FRS 26

The relationship between IAS 32/IAS 39 and FRS 25/FRS 26

FRS 25 (‘Financial Instruments: Presentation’) implemented IAS 32, while FRS 26 (Financial Instruments: Measurement) implemented IAS 39, bringing both standards within UK GAAP. IFRS 7 (‘Financial instruments: disclosures’) was implemented in UK GAAP in FRS 29 for accounting periods commencing on or after 1 January 2007.

For periods commencing on or after 1 January 2007, the UK standards are equivalent to the international standards except for a few minor differences. Prior to that date, however, there were certain more substantial differences between FRS 26 and IAS 39. Staff should consult an HMRC accountant if they require further detail on these differences.